Huntsville recovers previous investment in Remington Arms
HUNTSVILLE, Ala. (WAFF) - The City of Huntsville announced Friday the recovery of $12.5 million offered in incentives to Remington Arms back in 2014.
The firearms manufacturer filed for bankruptcy in October 2020, resulting in the sale and auction of its assets. The recent sale of the 800,000-square-foot facility on Electronics Boulevard allowed Huntsville, Athens, Madison County, Morgan County, Limestone County, and the Limestone County Economic Development Association to recoup investments and legal fees.
“This is the best good news, bad news story,” said Chip Cherry, CEO of the Huntsville/Madison County Chamber of Commerce.
“The mechanisms put in place to protect the public investment in the project worked. The funds to cover the mortgage obligation have been received.”
Mayor Tommy Battle credited the hard work of the economic development recruitment team in helping to protect the taxpayers.
“You don’t see this happen very often,” Mayor Battle said. “Despite the difficult outcome for Remington, their decision to locate in Huntsville and the years they were in operation provided millions of dollars in payroll and put the City on the map for advanced manufacturing. Because of Remington, we were on the radar of the site selection consultants which resulted in many projects selecting the Huntsville area for their projects. We’ve gotten our money back and more.”
For the first three years, Remington met its performance targets. It exceeded its investment target of $110.9 million and met early ramp-up targets for jobs and wages. At one point, prior to the company’s downturn, the Huntsville facility employed more than 500 people with an average wage above the $19.50 average required by the PDA. In late 2017, however, it was announced the company would not meet target employment numbers.
Remington filed for Chapter 11 bankruptcy in 2018, which provided financial relief during reorganization. The company ultimately failed to stabilize and filed for Chapter 13 bankruptcy in 2020.
“We are fortunate the region’s robust economy provided numerous opportunities for those who lost their jobs when Remington ceased operations,” Mayor Battle said. “The mechanisms we used to protect the public investment in the project worked, and our region is now a prime location for advanced manufacturing.”
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